Industry Odisha Bureau, Jul 30: Since India’s service sector is claimed to be the largest and fastest-growing sector, because it contributes over 50% of the country’s Gross Domestic Product (GDP) and also employs around 30% of the workforce with strong global export performance, the second trial release of India’s Index of Services Production (ISP) has reportedly tracked eight (08) out of the nineteen (19) service sectors having posted a double-digit growth in May 2026.
Media reports, quoting experts and analysts, stated that, “Average growth for eight key services accounting for nearly 87% of the total weight of the covered 19 services was 10.3% in May 2026.”
Media reports, quoting experts and analysts, also added that, “Growth of the covered 19 services amounting to 60% of total services output was 9.8% in May 2026.”
Media reports, citing data of India’s Ministry of Statistics and Programme Implementation (MoSPI), further stated that, “Accommodation and Food services led growth at 27.4% in May 2026 followed by Real Estate at 17.7% and retail trade at 13.3%, while Rail Transport recovered to 3.4% growth in May, Road Transport expanded 4.4%, Water Transport 5.6%, Wholesale Trade grew 3.7%, Telecommunications, Banking and Insurance expanded 11.8%, 12.1% and 2.7%, respectively.”
Media reports, citing data of India’s Ministry of Statistics and Programme Implementation (MoSPI), further added that, “IT and Computer-related services grew 10.3% during May 2026, while Professional, Scientific and Technical services, including Research and Development (R&D) expanded 11%, Administrative and Support services grew 5.0%, Arts, Entertainment and Recreation rose 1.6%, but Air Transport services contracted 2.8% in May 2026 as the West Asian conflict and higher energy prices weighed on the sector. Similarly, Postal and Courier services, and Information & Broadcasting (I&B) services also contracted 1.0% and 7.6%, respectively.”
Notably, “The Index of Services Production (ISP) is a monthly indicator that measures the real output of India’s formal services sector, complementing the Index of Industrial Production (IIP) for better economic monitoring. Launched by India’s Ministry of Statistics and Programme Implementation (MoSPI) on July 14, 2026, is designed to track short-term changes in the volume of services produced relative to a base year of 2024-25, the trial ISP covers 19 formal services sub-sectors, representing about 60% of the services economy and provides policymakers, businesses, and investors with timely insights into the performance of the services sector.”
